What is Planned Giving?
Planned giving is a type of charitable donation where a donor decides to make a gift to a non-profit organization at some point in the future. This type of gift is often referred to as a “legacy gift” because it is typically made after the donor’s death.
How Does Planned Giving Work?
Planned giving can take many forms, including bequests in wills, charitable gift annuities, and charitable trusts. These gifts can be made outright or deferred, meaning they can be given immediately or at a later date.
Bequests in Wills
A bequest in a will is one of the most common forms of planned giving. This type of gift allows a donor to leave a specific amount of money or assets to a non-profit organization in their will.
Charitable Gift Annuities
Charitable gift annuities are another form of planned giving. With this type of gift, a donor gives a lump sum of money to a non-profit organization in exchange for a fixed income stream for the rest of their life.
Charitable Trusts
Charitable trusts are a more complex form of planned giving. With this type of gift, a donor transfers assets, such as stocks or real estate, to a trust. The trust then pays income to the donor for a set period of time before the assets are transferred to the non-profit organization.
Why Consider Planned Giving?
There are many reasons why someone might consider planned giving. For some, it’s a way to leave a lasting legacy and make a meaningful impact on the world. For others, it’s a way to support a cause they care about while also receiving tax benefits.
What Are the Benefits of Planned Giving?
Planned giving can offer a number of benefits to both the donor and the non-profit organization. For donors, planned giving can provide tax benefits, such as reducing estate taxes or providing a charitable deduction on their income taxes. For non-profit organizations, planned giving can provide a reliable source of funding for years to come.
How to Get Started with Planned Giving?
If you’re interested in making a planned gift, the first step is to talk to a financial advisor or estate planner. They can help you explore your options and create a plan that meets your financial and philanthropic goals.
Conclusion
Planned giving is a powerful way to make a lasting impact on the world while also providing financial benefits to both the donor and the non-profit organization. Whether you’re interested in leaving a legacy or supporting a cause you care about, planned giving is a great way to make a difference. So why not get started today?
